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1997

Crisis management and negotiation in professionalsports : the leadership of the CommissionerEric Hoffman

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Crisis Management and Negotiation in Professional Sports:

The Leadership of the Commissioner

By

Eric Hoffman

Senior Project

Jepson School of Leadership Studies

University of Richmond

Richmond, VA

April, 1997

Crisis Management and Negotiation in Professional Sports:

The Leadership of the Commissioner

by

Eric Hoffman

Senior Project

Jepson School of Leadership Studies

University of Richmond

Richmond, Virginia

April 1997

Project Development

The original idea for this project was brought to my attention as I

visited my home during a break from my Jepson internship with the

Pittsburgh Pirates, a major league baseball team. As I was home in Ohio, I

read an article in the local newspaper which described the multitude of

problems facing Major League Baseball. The writer proposed that these

problems could be solved if baseball found a permanent commissioner.

The article concluded with a sarcastic entry similar to those in the

classified ads; "Wanted: Experienced person with demonstrated skills in

marketing, legal issues, conflict resolution, labor negotiation, public

relations, and exercising authority over a group of twenty-nine rich men

and Marge Schott" (Gallipolis Daily Tribune 7 /31/96). Upon reading this

article, I began to consider the many demands which are placed upon the

commissioners of professional sports in America. The issues raised in the

article; the ability to resolve conflict, manage crisis, and reflect a positive

image to the fans of the sport through the media, have been raised in

multiple leadership courses I have taken. The execution of these skills is

directly related to the evaluation of the commissioner's effectiveness and

the public perception of the sport.

The contribution this research project makes to the advancement of

the study of leadership is applying the theoretical outlooks of conflict

resolution and crisis management to the actions of the commissioners in

professional sports during highly publicized situations of strife. The

unique aspect of this project is that it will use the frame of reference

developed by the print media to analyze the process and outcomes of the

actions taken by the three main leaders I will analyze: current National

Basketball Association (NBA) Commissioner David Stem, current National

Football League (NFL) Commissioner Paul Tagliabue, and acting Major

League Baseball (MLB) Commissioner Bud Selig. The reliance upon print

media sources will allow my work to be affected by the biases of the

writers, but it will also serve to demonstrate one of the requirements of a

person in the role of commissioner, creating a positive media image in

order to promote their sport.

A final topic which will be considered in this paper is the question of

whether or not the lack of a permanent commissioner in Major League

Baseball has contributed to the lack of popularity of the sport and if

current leadership-related problems could be solved by an autonomous

commissioner. The positive and negative leadership aspects of these

current commissioners in professional football, basketball, and baseball

will then be balanced in order to suggest the ideal make-up for the next

Commissioner and Commissioner's Office for Major League Baseball.

Literature Review

My research has yielded two distinctive types of literature which I

will be combining in my research to develop logical conclusions that will

provide support for the basic hypothesis: The ability of a commissioner to

effectively exercise leadership skills in crisis and negotiation has a

correlated effect upon the popularity and marketability of the sport. The

two categories of literature are leadership textbooks and newspaper

articles primarily written by sports journalists. An addition to this

knowledge pool will come from books containing historical baseball

narratives from a time span ranging from the 1920's to the present. The

most important category of literature for this project will be the

information selected from my past texts. The texts I have chosen to use

and the highlighted information will create the framework through which I

will examine the multitude of articles I have discovered.

Leadership Theory

Laurence Barton's text Crisis in Organizations: Managing and

Communicating in the Heat of Chaos will provide the information

necessary to develop a definition of a public crisis, determine guidelines

for proper leader action in the face of crisis, and present examples and

measures of the outcomes associated with proper and improper leader

behavior in handling crisis. Barton's text is written to educate an

organizational manager or leader, but many of the lessons he raises apply

directly to the office of a professional sports commissioner:

1) Impact of a crisis can be reduced is individuals take the time to

understand the relationship of crisis to their organization (p.3).

2) Management's reaction to crisis - positive or negative - may either

save money and preserve the organization's reputation or greatly

damage the organization (p.3).

3) It is the responsibility of company to understand the pulse of

employees, stockholders, and the masses (p.17).

4) The press serves an important role in opening up crises for

examination and resolution. They must be dealt with honestly and

swiftly in order minimize negative publicity (p.22-23).

These four lessons will be very important in the evaluation of leadership

action in resolving the crises in which the actions of multiple

commissioners will be analyzed. In the general case of a professional

sports crisis, the league's commissioner must understand the impact of the

crisis and the ability to effect the crisis with their own action or those of

their support staff. When the term management is used in lesson #2, it

will typically be referring to the combination of the commissioner, and

leaders from the group of owners and the players union. It is up to the

commissioner to understand the views of all these groups, along with the

consumer or fan when managing important situations. Finally, it is

imperative for these critical groups to deal fairly with the press in order to

minimize the negative publicity that will be presented to the public for

review. The popular media section of this review will show the effect that

poor crisis management techniques can have on a professional sport.

The text Negotiation, written by Roy J. Lewicki, Joseph A. Litterer,

John W. Minton, and David M. Saunders gives a framework in which to

evaluate the efforts of commissioners as third-party negotiators and allows

for more thorough examination of the break-downs in negotiation which

led to Major League Baseball's 1994 player's strike. Five typical problems

which inhibit negotiation as conflict escalates are as follows:

1) Atmosphere is charged with anger, frustration, and resentment.

Mistrust and hostility are directed at the opposing negotiator.

2) Channels of communication become closed or constrained; also are

used to criticize and blame the opponent.

3) Original issues become blurred or ill-defined, new issues are added.

4) Parties see themselves as further apart than they actually are, may

not recognize areas in which they are in agreement.

5) Parties become locked in their positions as tension increases, rather

than searching for concessions and moving towards agreement.

(p.144)

These factors will come out clearly in the development of the 1994 MLB

players' strike. The question that will be raised is whether or not a third

party, or an autonomous commissioner, could have intervened at any point

and resolved the situation before the negative consequences associated

with the conflict grew to extreme levels. "Often third parties need not do

more than implement some of the dispute resolution techniques ... such as

aiding in the reduction of tension, controlling the number of issues,

enhancing communication, establishing a common ground, and highlighting

certain decisions" (p. 349). This description is designed for the

organizational manager; in the situation of a sports commissioner, it

becomes more difficult due to the number of involved parties and the lack

of authority the commission holds in the negotiation process. However,

examples will be reviewed where the commissioner was able to provide

some of the listed forms of relief. Other factors involved in typical third

party intervention may not be as important in the professional sports

example, such as the timing of the intervention. It is the responsibility of

the commissioner to act in the best interest of the sport, and a requirement

of that action is to stay informed and provide input to the collective

bargaining process between owners and unions of players and officials.

Leadership: Enhancing the Lessons of Experience by Richard 1.

Hughes, Robert C. Ginnet, and Gordon Curphy will be used to develop a

basis for my understanding of conflict resolution. This text provides a

useful definition for conflict and valuable discussion of the results of

effective leadership in conflict. A challenge in merging conflict resolution

and crisis literature comes from the common tendency to group the two

concepts together in a definitional sense. Conflict can be defined as

occurring, "when two opposing parties have interests or goals which

appear to be incompatible'' (Robbins in Hughes p.363). The definition of

conflict applies to the actions of a professional sports commissioner

typically in handling labor situations involving a union of players or

umpires petitioning management for a more favorable collective

bargaining agreement. Barton defines crisis as, "A major, unpredictable

event that has potentially negative results. The event and its aftermath

may significantly damage an organization and its employees, products,

services, financial condition, and reputation" (Barton p.2). This definition

allows the example of a player embarrassing the game in some manner as

a crisis in which the commissioner will have to become involved. Recent

crises from different sports have included a star baseball player spitting

on an umpire following a dispute or a basketball player with multi-colored

hair kicking a courtside camera person in the groin during a game. These

unpredictable situations call for immediate action from the commissioner,

coordinated with all affected parties and the media. The gray area in this

discussion comes when a conflict, such as a labor negotiation, escalates to

the level of a crisis. This transition can be recognized in the 1994 MLB

Player's Strike. The inability to effectively negotiate a conflict between the

owners and the players' union led to crisis which MLB had to manage.

An additional text which will be used to help understand the unusual

situation surrounding the authority vested within commissioner's office

will be Ronald A. Heifetz Leadership Without Easy Answers. An

interesting balance that is held by many sports commissioners is the fact

that they have a duality of power. The MLB commissioner has the power

to act on any situation or issue that defies the best interest of the game by

delivering a punitive response. In dealing with on-field and off-field

activities concerning MLB players, umpires, owners, and employees, the

commissioner has seven capabilities to use authority. The formal authority

vested in the commissioner allows for control and direction of attention,

access to information, control of information flow, power to frame issues,

maintenance of order or disorder, select decision making processes, and to

penalize those in violation (Heifetz 104-105). However, his authority is

taken by the MLB owners and MLB Players Union when dealing with labor

and policy issues. Leadership '\Nithout authority means engaging people to

make progress on the adaptive problems they face. This progress requires

learning, so the task of the leader without authority is to coordinate the

educational process in the organization or community (Heifetz 187). This

concept outlines the role which should be played by the commissioner in

the process of resolving labor conflict, identifying the impact of the parties

actions upon the health of the game, and communicating these beliefs to

involved parties.

The difficulty in analyzing the leadership of the commissioner's

offices in light of both crisis management and conflict resolution situations

occurs when the inability to resolve conflict escalates to a crisis for Major

League Baseball. However, this may fail to fit the definition laid out by

Barton because this crisis commonly occurs when collective bargaining

breaks down and when there is a threat or occurrence of a player or

umpire strike or the owners feel that they must lock the players out (not

allow them to play). This changes the working definition of crisis for this

project to a "predictable or unpredictable event". Because the

commissioners do not typically hold the authority to avert this type of

predictable crisis, they must be prepared to manage the windfall of

negative publicity which surrounds the existence of a labor dispute within

professional sports. The definition of a crisis may also be contingent on the

viewpoint through which one is analyzing the situation. For this project,

the view is set primarily through the eyes of print media, making it a

biased, but relatively accurate view of the interests of the fans. This

viewpoint may see a certain situation as a crisis, but for different reasons

than would other reference groups; owners, players, umpires, and the

commissioner.

Methodology

The research design for this project is based primarily upon the use

of electronic sources including Lexis Nexis, the World Wide Web, and First

Search in order to discover a multitude of current information relating to

situations of crisis and conflict faced by the NBA, NFL, and MLB. This

information will be categorized based on the relevant commissioner who

handled the situation and analyzed in order to determine how relevant

leadership issues influenced the actions of or were neglect in the actions of

the commissioner. The sources of the information will be critiqued to the

best of my ability to eliminate personal or regional biases in the

description of a commissioner's action. ( ex. Cleveland writer chastising Bud

Selig for not suspending Baltimore's Roberto Alomar for the playoffs;

Alomar hit a home run which eliminated the Cleveland Indians.)

In order to develop and integrate concepts and theory which will

enhance leadership education, I will use texts, notes, and narratives from

some of the courses I have taken. These courses include Leadership in

Crisis, Foundations of Leadership, and History & Theories of Leadership. I

will also need to examine the materials associated with the Conflict

Resolution course so that I can gain a greater understanding of the

leadership skills involved in that essential art of the commissioner.

The main hypothesis that will be tested in this research project is

that when a commissioner competently exercises crisis management,

conflict resolution, and communication skills in the eyes of the print media

(and inherently from there to the eyes of the sport's fans), the

commissioner advances the popularity and marketability of the game. The

alternative hypothesis to this is that competent execution of leadership

activity will have no effect on the popularity of the game. Both hypotheses

have examples which will provide support, but it will be my end to

determine an actual conclusion to this inconsistency.

Discussion of Commissioner's Individual Leadership Actions

The extensive use of newspaper articles, magazine articles, journal

submissions, and historical narratives is designed to highlight important

aspects of leadership associated with the commissioner's position in

professional sports. The format of this section of my project will be to

provide a historical view of the development of the baseball's

commissioner's office and a look at basebalPs most renowned

commissioner, Judge Kennesaw Mountain Landis. Time will then be

forwarded to a view of the curren t situation surrounding the leaders of

professional sports. In order to understand the actions of the leaders

which will be analyzed, one must first gain a knowledge of the situation in

which they operate. Finally, multiple media bytes will be used to examine,

analyze, and apply the leadership action of David Stem, Paul Tagliabue,

and Bud Selig to the concepts of crisis management and conflict resolution.

The Creation of Baseball's Commissioner's Office

Professional baseball began in the 1870's and existed without an

outside commissioner for over forty years. In the late 1910's and early

twenties, problems arose which required baseball owners to create a

position of an autonomous authority designed to bring discipline to the

game. As baseball increased in popularity throughout America, it had also

gained the interest of gamblers. While rumors of fixed games had been

persistent in baseball around these times, it was not until the 1919 World

Series between the Cincinnati Reds and the Chicago White Sox that the

fixing of games was proven and exposed to the nation. During the 1920

baseball season, evidence came out which showed Chicago players had

taken money from gamblers in return for losing the World Series. This

incident is remembered in history as the "Black Sox Scandal" and has been

immortalized in popular culture in the motion pictures Eight Men Out &

Field of Dreams. It was as a result of this incident that baseball's owners

hired the game's first commissioner.

"Judge Kennesaw Mountain Landis was hired as baseball's first commissioner in January 1921. The position was created to provide a strong leader for the game in the wake of the Black Sox Scandal, which led to eightmembers of the Chicago White Sox being banned from baseball for life for their part inthrowing the 1919 World Series to Cincinnati" (Rocky Mountain News 4/18/95)

Landis is often referred to as having ruled the game with an "iron

fist". His background contained two important factors which will arise

later in the discussion of qualities which are necessary in a commissioner.

Landis was a Federal Judge, giving him a natural background in law,

decision-making, and ensuring justice. He was noted as being stubborn,

enjoying the spotlight, and notably, "he was a fan before he became

commissioner'' (Nemeck 130). This array of characteristics, along with the

authority he was invested with by the newly drafted Major League

Baseball Agreement allowed him to take strong actions to improve the

image of the game of baseball and eliminate individuals who tarnished this

image. The most important weapon in Landis's arsenal was the Major

League Agreement which provides the authority and foundation for the

action of the Major League Baseball Commissioner. The Major League

Agreement states:

"The function of the Commissioner shall be to investigate ... any act,

transaction, or practice ... not in the best interests of baseball" and

to "determine what preventative, remedial or punitive action is

appropriate ... and to take such action against clubs or individual"

(Major League Agreement, Art. 1, sec. 2 (a)-(c) in New York Law

Journal 7 /12/96).

The Major League Agreement grants the commissioner broad powers to be

the investigator, judge, and appeals court on any infractions. This doctrine

allowed Landis to take action in voiding player transactions, banishing

players for reasons such as gambling, and even suspending Babe Ruth for a

month because he played in a barnstorming league prior to the 1922

season (Nemeck 186). The authority held by the commissioner's office in

Landis's time was much greater than that which is awaiting the next

commissioner of baseball. Judge Landis's confrontational style of resolving

disputes and the severity of his penalties may outrage owners and lead to

his removal. However, he remains a standard by which to measure the

power, strength, and decisiveness held by any commissioner since his

reign. "His career typifies the heights to which dramatic talent may carry

a man in America if only he has the foresight not to go on stage'' (Brown in

Nemeck 104). Landis is considered to be one of the greatest sports

commissioners of all time and the standard he set in resolving disputes

and protecting the image of Major League Baseball has made him a

benchmark for all commissioners who have followed.

Current Situation Facing Major League Baseball's Commissioner

Professional baseball is on the wane. Salaries must come down or

the interest of the public must be increased in some way. If one or

the other does not happen, bankruptcy stares every team in the face"

- Albert Spalding, a former baseball player and league executive in

1881. (Toronto Sun 6/19/94)

In commenting during the MLB strike of 1994, acting commissioner Bud

Selig said, "What you are seeing today is an industry adjusting to change.

We are trying to preserve the great tradition of baseball while trying to be

sensitive to changes that need to be made" (Wisconsin State Journal

6/14/94). The changes that have taken place in Major League Baseball

during the 1990's are perhaps the most spectacular of any time period in

baseball history. The decade began with the realignment of divisions,

expansion in the National League, addition of an extra round of playoffs,

and a wild card team from each league. From this point, MLB suffered

through the most difficult labor conflict in its history. "Finally, there is

labor peace, ensuring five interrupted seasons. Finally, there is a form of

revenue sharing. Interleague play is here to spice he scene, if also to

annoy purists" (Chicago Sun-Times 2/28/97). Major League Baseball is on

the brink of a resurgence and hopes are high for the industry as the 1997

season begins to pick up steam. The most recognizable change in the near

future of Major League Baseball will be the nomination of its 9th full-time

commissioner. At this point, MLB will be prepared to address its many

problems which linger even though labor peace is a reality. The

importance of leadership from a strong commissioner within this

resurgence will be a recurring theme in this project. Examples will show

how MLB's current situation is similar to that facing the NBA in the early

1980's, before David Stern took over and righted the course of the NBA.

The situation is ripe for MLB to follow this example, even in the times of

high salaries and ungrateful stars. Fans are beginning to come back to the

game, and the length of time they stay will be largely determined by the

leadership qualities possessed by the next commissioner.

David Stem, Commissioner of the NBA

"We were in deep yogurt, But David challenged the direction of the league"

(Owner Richard Bloch on Stern's leadership in Sports lliustrated 6/3/91).

When David Stern took office as the Commissioner of the National

Basketball Association on February 1, 1984, he inherited a league in which

problems were plentiful. The NBA was in a position of popularity behind

professional football and baseball. NBA games were rarely seen of national

television and the pervasive image of the league was a negative one.

(Chicago Sun Times 6/29/96).

"When Stem took over as NBA commissioner, the common perception

of the league was 'it was too black, too over-salaried, too involved

with drugs'(Stem). He immediately tackled these problems. He got

the players union to adhere to an antidrug agreement and salary cap.

Then ... he put the spotlight on the NBA's premier players,

regardless of color" (Sport 3/94).

Stem's initial actions were a combination of his business acumen and his

ability to exercise his authority to address issues which would allow the

NBA to improve its image with fans, sponsors, and network television.

"What Stem did was explore marketing possibilities, promote individuals

rather than teams ... and avoided public relations pot holes. When drug

abuse ran overtly rampant in the mid-1980's, he toughened the league's

policy. When (the style of play) alienated viewers, he introduces tighter

defensive rules" (The Palm Beach Post 11/1/96). By understanding the

power of his position in solving the crises which faced the NBA and by

communicating his feelings to players, owners, and officials, Stem was able

to capitalize on the opportunities for expansion available for the NBA. "If

(David Stern) was universally adored, he wouldn't be in charge. Basketball

would be baseball. That it is a tribute to the power of the commissioner,

power never exercised in the NBA until Stem took control in 1984" (The

Palm Beach Post 11/1/96).

The four main issues in which David Stem has differentiated himself

from other commissioners are his action in dealing with labor disputes, his

commitment to the promotion of minorities in all positions of his sport, his

ability to act decisively in crisis, and his marketing skills.

Stern and Labor

"A measure of Stem's unparalleled ability to negotiate the twists and

turns of professional sports management is the fact that the NBA is playing

games without a collective-bargaining agreement, while MLB and the NHL

bum" (The Sporting News 1/2/95). In the position of mediator, Stem has

kept the NBA relatively free of labor strife; when NBA players attempted

to decertify their union and strike in 1995, Stem was able to negotiate a

bargaining agreement and keep power in the original union. Stem's use of

commanding tactics and persuasion have allowed him to enhance the

power of his office. "He has been known to get up on the conference table

and walk up and down it just to make a point. David Stern is a memorable

figure ... It's more his cutting you up and putting you in your place."

(Sports Illustrated 6/3/91). He also has the ability to promote the

interests of the game in the face of opponents. "There was significant

opposition among the owners to the salary cap, I had to sell it to them. I

had a leadership role based on my own view of what's best for the NBA.

That view isn't always the same as the owners I represent" (Stern in Los

Angeles Times 3/8/87). His ability to maintain focus upon the best action

to promote the NBA and communicate that to conflicting parties allows him

to influence others during negotiation.

Stern and Minorities

u1 believe that David Stern and ( deputy NBA commissioner) Russ

Granik are committed to seeing that minorities are more included in

NBA ownership. (Hiring of minorities) is not a mandate, it is a set of

principles that David and Russ have taken upon themselves to

support with their great vision and outstanding leadership" (Isiah

Thomas in Chicago Sun-Times 3/2/97).

An initial complaint expressed when David Stern became NBA

Commissioner was the number of African-Americans players in the NBA

was limiting the popularity of the league. Since Stern took office, the NBA

has been an industry leader in the hiring of black coaches and executives.

The NBA also had the first black ownership group in major professional

sports. Situations such as these are not accidents; they come from the

responsible attitude of leadership and equality expressed by Stem and his

statf. It also comes from Stern's own willingness to understand the role

the NBA can play in setting an example which may improve the outside

world. "Many of society's biggest issues - violence, drugs, racism - are

played out in sports for the world to see. There's no reason for sports not

to play a leadership role in addressing those issues" (Stern in The

Commercial Appeal 6/7 /92). The success of the NBA in addressing the

issue of racial equity across all levels of the league should be noted and

simulated by other professional sports organizations.

Stern and Crisis

"With stronger leadership and labor peace, the NBA has a history of

dealing swiftly with players who accost an official ... The NBA has acted

swiftly by meeting immediately with the player and his representatives.

Thats when an appeal can be made and/or negotiated" (The Arizona

Republic 10/6/96). The incidents referred to in this excerpt involved Los

Angeles Lakers stars Nick Van Exel and Earvin "Magic" Johnson making

physical contact with officials during crucial games near the end of the

1995-96 season as the Lakers were fighting for playoff positioning. The

separate incidents were acted upon immediately by the commissioner's

office with each playing receiving a three-game suspension. In contrast,

events of this type have recently taken weeks to resolve in baseball, with

a lengthy appeal process and sometimes a lessening of charges. By

understanding the effects of timely action, Stern helps to sweep the

negative publicity generated by the incident off the sports headlines so

that fans can focus on the games which are still going on. An

understanding of crisis and the media which surround it have given the

NBA numerous examples of success which could have been included in this

section.

Stern and Marketing

"MLB has sports personalities; the NBA has cultural icons" (Sport

3/94). This simple statement identifies one of the methods Stem has used

to move the NBA to the forefront of professional sports. The benefits from

the promotion of individual players can be seen each day on television, in

the movies, and in retail stores. Stem has also guided the NBA's successful

expansion to global markets, concentrating on developed nations. An

influx of international players in the NBA has also contributed to this

success. "David had a more progressive look ... he was a brilliant young

lawyer who was blessed with business instincts, marketing sense, and a

disarming sense of humor" (Sports Illustrated 6/3/91). The marketing

instincts Stem possesses have allowed him to understand the importance

of a positive relationship with the media in handling crisis. Stern's

business skills have now become a prerequisite for future professional

sports organizations to emulate. They have also served to increase his

authority with owners and players because the success of the NBA's

marketing strategies has increased the value of the NBA franchises and the

potential for players to earn in salaries and endorsements.

No one disputes that Stern is now the best commissioner in sports, the best

in the history of basketball and every bit the equal of the best sports

commissioner of all time, such as the NFL's Pete Rozelle and baseball's

Kennesaw Mountain Landis" (Sports illustrated 6/3/91).

Paul Tagliabue, Commissioner of the NFL

"For the time being ... he is running the only major professional sports

league in the country in a state of labor peace, which is no small

accomplishment in today's environment" (The Sporting News 1/2/95)

In the fall of 1989, the National Football League was undergoing a conflict

that stung the core of the league's success over the previous three decades.

Commissioner Pete Rozelle, who took office in January of 1960, had

announced his retirement early in 1989. (The Palm Beach Post 12/8/96).

In the wake of his announcement, NFL owners became divided on the basis

of the number of years spent as an owner. "Old-guard" owners, who had

been in the league nearly 30 years were set on a candidate name Jim

Finks, the 62 year-old General Manager for the New Orleans Saints and

longtime football man. The ''new guard" wanted Paul Tagliabue, a 48 year­

old lawyer who had represented the NFL many times. The equal

distribution between new and old owners created a divide that even

Commissioner Rozelle could not traverse. "The logjam (in naming a new

commissioner) was quickly developing an image problem for the league,

especially when compared to the way the baseball owners quickly named

Faye Vincent as commissioner after A. Bartlett Giamatti died of a heart

attack on September l" (The Sporting News 10/23/89). However, four

days after this article was published, on October 27, 1989, Paul Tagliabue

was elected to be the next NFL Commissioner. Tagliabue had big shoes to

fill following Rozelle, one of the most renowned figures in all of

professional sports, and his early review in the media was not promising:

"Tagliabue, who was elected at the owners' meeting yesterday in

Cleveland, doesn't have the public relations skills of predecessor Pete

Rozelle or the football background of defeated rival Jim Finks, but

the 48 year-old attorney is know for bringing people together" (The

Washington Times 10/27 /89).

The defining factors of Tagliabue's tenure have been the lack of major

labor problems in the league, a unique relationship with television

networks, use of the power of the NFL to take on social ills, and the ability

to deal fairly with other types of crisis, although not always in an

expedient manner. Tagliabue has also been downgraded because he lacks

the personality and visibility of his predecessor, Rozelle and his peer,

Stern.

Tagliabue and Personality

"Tagliabue's intellectual approach doesn't appeal to the average fan ..

. Though Tagliabue may not have a dynamic personality, ... his leadership

and vision have translated into extraordinary positive results for the

league" (The Sporting News 5/8/95). This statement, along with the fact

that he has been involved with the NFL for only a decade, create difficulty

for Tagliabue in keeping tabs and understanding the pulse of the players

and fans. This can create a problem for Tagliabue in handling crisis

situations. However, Tagliabue's approach seems to work very well in

negotiation with owners, television networks, and sponsors. "Paul's a

moderating influence, a problem solver. He looks for a solution that

expands the size of the pie rather than just splitting the pie up into more

pieces" (law partner Bob Sayler in The Washington Times 10/27 /89). He

has been successful in fostering labor peace and has been in the forefront

on the development of American football worldwide.

Tagliabue and Social Responsibility

"In light of the situation in the Mideast we've made it clear that our

objective is to focus on the game itself on Sunday afternoon and on the rich

tradition and history of the Super Bowl" (Tagliabue on ABC's World News

Tonight 1/25/91). In January of 1991, the eyes and ears of America were

tuned to CNN as we watched the escalation of Operation Desert Shield to

the invasion referred to as Operation Desert Storm. At this sensitive time,

the NFL was in limbo concerning the handling of the premier sporting

event in America, the Super Bowl. After deciding to play the game,

Tagliabue was able to cancel most other events surrounding the event and

place an emphasis on providing security for those in attendance and

providing transmission of the game to Saudi Arabia. This situation was

similar to the decision made by baseball's Landis in 1942 when baseball

continued at the wish of President Roosevelt although many players had

enlisted and were in Europe. A second important situation in which

Tagliabue showed the power of the NFL in promoting social responsibility

was during the assignment of the 1993 Super Bowl, which was originally

slated to be held in Phoenix, Arizona.

"NFL commissioner Paul Tagliabue was expected to meet in

Washington, D.C., today with Arizona Sen. Dennis Deconcini and Gov.

Rose Mofford over the 1993 Super Bowl. The commissioner has

recommended Arizona be stripped of the game because voters

rejected a holiday honoring Martin Luther King" (The San Diego

Union-Tribune 12/7 /90).

This situation was a result of a continuing league effort, which is still the

target of much criticism, to bring more awareness to issues of racial

equality. With a majority of players in the league being of African­

American heritage, Tagliabue felt it was the sensible thing to do. It is also

important to note that the Super Bowl is traditionally held the week

following Dr. Martin Luther King Day. This example highlights how a

commissioner who understands the power of their position and the

positive impacts they can have in the face of crisis can create positive

publicity for the league and also bring about important social change.

Tagliabue and the Bill Parcells Incident

Every year, the two-week layoff between the AFC & NFC

Championship games and the Super Bowl is utilized to allow the teams a

chance to prepare for one another and to give the media a chance to

provide unprecedented amounts of publicity to the event. The top story

going into the 1997 Super Bowl was that New England Patriots Coach Bill

Parcells was going to the the Patriots following the game and take over

coaching duties for the New York Jets. The only flaw in this intention was

that Bill Parcells still had one year left on his contract with the Patriots and

New England owner Bob Kraft wanted Parcells to remain in New England.

Before the Super Bowl, both men denied the story. However, in the week

following the game, it became evident that Parcells was going to leave New

England in order to work for the Jets. Kraft responded by refusing to

release Parcells from his contract and called on Paul Tagliabue to take

action. Unfortunately, Tagliabue's response to the incident was not made

in a timely fashion. After the story had been back in the media for a few

days, the publicity began to take a negative spin for Tagliabue

individually, and the NFL as a whole.

"It was a mistake to believe he'd want a settlement instead of

another couple of weeks of messy accusations and name-calling up

and down the Eastern Seaboard. Instead, Tagliabue has shown none

of the leadership skills of NBA commissioner David Stem or late NFL

commissioner Pete Rozelle"(The Record 2/6/97).

"With the Jets and Kraft at an impasse which has embarrassed the

league, Tagliabue should have strongly offered to broker a deal. Give

the Patriots something big but something less than the first pick in

the draft" (Newsday 2/5/97).

Tagliabue did act in an appropriate manner, ordering a settlement similar

to that described in the second excerpt, but the damage from negative

publicity had been done. Fortunately, his resolution of the ordeal was

deemed as fair by the media and parties involved, so the story died. This

exemplifies one of the important aspects of crisis management; acting in a

timely manner and communicating these actions to the media. Tagliabue

also needed to show more concern to the situation to understand how it

was effecting both the media and the fans.

Bud Selig. Acting Commissioner of Baseball

On Labor Day of 1992, MLB Commissioner Faye Vincent was ousted

from office in an owners' coup which sent the sport reeling ( Chicago Sun

Times 2/28/97). Owners had become upset with Vincent's performance -

he hadn't advanced labor negotiations, didn't compare well to other

commissioners, and his elevation to the office was not the product of a full

search for owner. Upon the death of Commissioner A. Bartlett Giamatti,

Vincent was promoted from Deputy Commissioner to the position of MLB

Commissioner. This natural selection was detrimental to Vincent because

his only experience in MLB had come under Giamatti's brief tenure. Major

League Baseball faced a crisis upon the death of Giamatti, and answered

this uncertainty by promoting Vincent. In the late summer of 1992,

baseball owners envisioned the multiple problems Vincent would create in

the upcoming negotiation process and voted to make a change. "By naming

Milwaukee president Bud Selig as temporary commissioner, (baseball's

owners) sent a message that the next labor negotiations \!\ii.th the players

would not be a soft-sell" (Chicago Sun Times 9/10/92).

The term of Selig, who was named interim commissioner because of

his position as Chairman of the Owner's Executive Council, was initially

destined to last only a brief period of time. "Selig will serve until the

restructuring committee redefines the new commissioner's job and then

give way to a permanent commissioner. That should take about two

months" (Chicago Sun Times 9/10/92). The initial time limitation then was

altered as Selig was still in charge as labor negotiations were beginning

between baseball's owners and the Major League Baseball's Players'

Association (MLBPA). According to the Providence Journal-Bulletin,

owners postponed hiring a new commissioner while "prevailing upon Bud

Selig ... to stay on as the game's de facto commissioner until a new

collective bargaining agreement is negotiated with the players" ( 1/20/94).

Already in 1992, Selig was receiving negative publicity concerning his

performance in the commissioner's role. "Selig is not decisive, to a fault,

because he believes in the democratic process. He has agonized about

every move, turning to the Executive Council for final guidance on the

(tough decisions). If there were a commissioner, decisions would be made

more quickly" (USA Today 12/9/92). This consensus building is a good

quality in some situations, but in many of the crises faced by professional

sports commissioners, the time taken to build consensus is long enough for

damaging publicity to appear in the media. This leadership style hurt Selig

many times during his tenure as interim commissioner.

Contributing Factors to Major League Baseball's Decline

At this point, MLB was beginning a downward spiral in popularity

that was blamed on the lack of action in the game, lack of personality in

the players, the impending labor situation, and the inequity between

teams in small and large markets. "Small market teams . . . cannot

compete with big-city teams in attracting marquee players because they

cannot afford the multi-million dollar salaries the best players demand"

(Wisconsin State Journal 7 /14/94). Other professional sports league

handled this crisis in an effective manner, but MLB still hasn't come up

with a plan to share revenues. "When the NBA wanted to help out its

small-market teams, David Stern snaps his fingers, and out of nowhere, the

league quietly announces it has millions of dollars set aside for its small

market teams to use" (Star Tribune 11/7 /96).

In no place was this lack of popularity more evident than in MLB's

television contracts, which were up for bids after the 1993 season. Cable

television giant ESPN reduced its payments from $100 million a year for

six games a week, to $42.S million a year for only three games per week.

After losing $443 million on a four- year, $1.06 billion deal signed in 1989,

network carrier CBS would offer only $200 million for the next two years.

"In only four years, baseball has gone from being a blue-chip free agent to

a stumbling, over-priced free agent whose ratings numbers were in serious

decline" (Dallas Morning News 10/18/93). Major League Baseball was in a

difficult position entering the 1994 season, and the dark cloud of an

extensive labor dispute on the horizon only intensified the negative

publicity and loss of popularity for baseball.

Selig and the Labor Strike of 1994

What follows is a time line of the ultimate example of the inability of

owners, players, and the Commissioner's Office to effectively negotiate a

collective bargaining agreement. The negotiations which began in January,

1993, demonstrated how an unresolved conflict can develop into a

damaging crisis. From the perspective of the media and most fans, this

was an example of ineffective leaders at work; the crisis management

principles outlined earlier were not considered and the negotiation

techniques employed to resolve the labor dispute were not adequate.

Jan.11,1993

Feb.17,1993 Aug.12,1993

March 7, 1994

June 14, 1994

July 18, 1994 July 27, 1994 July 28, 1994 Aug.1, 1994

Aug.11,1994

Timeline of Baseball 1994 Labor Strike

Collective bargaining begins. Owners' representative announces there will be no lockout in spring training. Owners vote to tie revenue sharing to salary cap After failing to reach agreement, owners pledge no lockout in 1994. Won't change agreement through 1994. Talks between representatives of owners and players resume for the first time in 14 months. Owners make a salary cap proposal; issues include limiting payroll, eliminating arbitration, lowering free agent eligibility. Players reject owners proposal; make counter demands Owners reject players' proposals. Players set Aug. 12 as strike deadline. Owners fail to make $7 .8 million payment to union pension and benefit fund. Final baseball games are played

Aug.12, 1994 Aug.23,1994

Aug.24, 1994 Aug.25,1994 Sept. 2, 1994

Sept. 6, 1994

Sept. 8, 1994

Sept. 14, 1994

March 30, 1995

Players' strike begins. Sides agree to federal mediation. Mediators meet separately with each side in preparation for upcoming talks. Sides meet for first time since strike began. Talks break off with no future meetings planed. Acting Commissioner Selig announces the season should be canceled unless owners and players come to an agreement by Sept. 9. Owners receive a copy of an unfair labor practices complaint filed by the players union from the National labor Relations Board. Players make a second proposal in attempt to settle before the deadline. Selig announces cancellation of remainder of season; including the playoffs and World Series (The Boston Globe, Sep. 15, 1994). Players announce they will end 7 1/2 month strike if a federal judge issues an injunction restoring salary arbitration and free agent bidding. (Ft. Lauderdale Sun­Sentinel 4/30/95).

"Baseball games are won and lost because of errors -- and this will

go down as the biggest 'E' of all," said former commissioner Peter

Ueberroth, who negotiated an end to the 1985 strike after two days.

"The losers are the fans, and there is no winner. 1994 -- the season

that struck itself out" (San Francisco Chronicle 9/15/94)

"Selig, a good man who tries hard to build consensus among maverick

owners, blew it when he did not show leadership the past two weeks.

He should have backed the labor agreement, (reached by owners'

and players' negotiating parties), done something creative when he

sought modifications, and gone down in honorable flames if owners

rejected his leadership"' (The Seattle Times 11/17 /96)

In analyzing the events which took place in the negotiation process

from January, 1993, until the MLBPA received a court injunction in April

of 1995, one can see the apparent lack of focus upon managing this crisis

and reaching a resolution. In making this judgment, I am obviously

writing and interpreting articles written primarily from the fan's

viewpoint. But the facts remain, baseball stopped play during one of its

most exciting seasons in history: multiple players were in position to

challenge records which had been in place since Ted Williams had a .406

batting average in 1941, and Roger Maris smashed 61 home runs in 1961.

The labor dispute ripped away Tony Gywnn's pursuit of William's .400

batting average and Ken Griffey, Jr., Frank Thomas, and Matt Williams

were all in position to challenge Maris's all-time home run standard. It

was also discouraging to observers of the dispute that nothing was settled;

the collective bargaining agreement in place when play resumed was the

same as a result of the injunction granted to the MLBPA. "The baseball

season finally opened last week after a nearly nine-month strike that sees

the sport's labor problem no further along than it was when players

walked off the job last August" (The Sporting News 5/8/95).

''From a public perception, however, both sides acted like spoiled

brats, sticking out their tongues at each other and refusing to

negotiate a settlement. And for that, the blame falls on Selig and

Fehr ... They failed to provide leadership that could've brought about

a settlement" (Rocky Mountain News 4/18/1995).

In response to media inquiries concerning whether or not the strike not

would have progressed this far if there were a commissioner in office,

Selig responded that it would have because "the commissioner had suasion

over one side only. Those who say there wouldn't be a strike if there was

a commissioner - - it's simply not true" (Selig in Chicago Sun-Times

8/31/94). This statement highlights one of the most evident inadequacies

of Bud Selig serving as commissioner - he is not autonomous. Because he is

also the owner of a MLB franchise, his decision-making and actions taken

as commissioner are all determined through the lens of an owner, with less

regard on the understanding needed from players, fans, umpires, and the

media. The resolution of this labor crisis in a timely manner would have

saved the owners and players $810 million in direct losses as a result of

canceled games (San Francisco Chronicle 9/15/94). The damage to the

reputation of the game, caused by canceling the World Series and the

denial the chance for some players to make history, can only be equated in

comparing pre- and post-strike attendance figures. In most cases,

attendance following the strike was down significantly as fans displayed

their own protest to the sport which had abandoned them the year before.

It is now two full seasons after the strike, and some organizations are only

now becoming optimistic about bringing fans back to baseball.

The 1997 Commissioner Search

"Right from the beginning, nobody has failed to understands this industry

needs a strong commissioner. That seems to be in dispute only . . . in the

media" (Selig in USA Today 12/9/92).

Now that MLB Owners and the MLBPA has agreed to a collective

bargaining agreement that will carry the game into the next century, a

promise of 5 years has been fulfilled. "Just as he promised to do once

labor peace was secured, Bud Selig has instructed basebalrs executive

council .- .. to find a commissioner to end his intermship" (The Houston

Chronicle 1/26/97). However, "The field is not crowded with candidates

eager for this job. The three names being tossed around at the moment

are Leonard Coleman, Bob Gutkowski, and Ron Shapiro" (The Houston

Chronicle 1/26/97). Coleman is currently president of the National League,

"Sometimes, as in the case of the late Bart Giamatti, a league presidency is

a steppingstone to the commissioner's office that is currently vacated'' (The

Houston Chronicle 1/22/94). Coleman also has been "praised for his harsh

punishments to players engaging in on-field violence last season" (The

Houston Chronicle 10/22/94). Gutkowski has been characterized in the

Truex article as a possible David Stern for baseball. He shares much of the

same background as Stem; he is an attorney with business acumen.

Hendrix is the most unlikely candidate mentioned in the article, as he

currently is a player-agent- long considered a nemesis of owners who are

required to approve the new commissioner with a two/thirds vote (The

Houston Chronicles 10/22/94). These candidates are largely speculation

by the media. Information concerning the search process is kept very

secretive among baseball owners and will be released when the process is

closer to completion.

To conclude this project, I must answer the question: What criteria

should the Executive Council's Search Committee use to evaluate potential

candidates at this crucial time for Major League Baseball.

'' Armed with delicate momentum, baseball more than ever requires a

dynamic leader who will stand up to owners, as the fly-swatting

Kennesaw Mountain Landis did ... Labor calm aside, the game is

beset by problems that must be resolved to achieve full recovery"

(Chicago Sun-Times 2/28/97)

On the makeup of the next commissioner, "he doesn't need to be a

baseball person ... he needs to be a consensus builder. He needs to

have long range vision of the sport. He needs to execute it ... There

is no training ground or school for commissioners ... You have to look

at what he can do, what he can learn, his abilities and what he can

offer to the game of baseball" (Rocky Mountain News 8/17 /95)

The next commissioner of baseball must do two things immediately:

he/ she must reestablish the autonomous power of the office so it doesn't

have suasion over only the owner's side of any conflict; he/she must

develop a public relations/marketing plan to promote individual players

similar to the NBA and to ensure that communication lines are accessible in

order to provide timely and positive response during crisis. The next

commissioner must focus of the first two listed principles of crisis

management. They must understand the relationship of their position to

the crisis and predict how their action will effect all the critical reference

groups (fans, players, owners, and umpires) involved in a MLB crisis. In

this project, I have develop the benefit of proper execution of these

principles by the commissioners of the NBA and NFL. The ability to carry

out the basic principles of crisis management, create a marketing plan

similar to those of rival sports, and to act in an autonomous fashion will

determine the success of the next Major League Baseball Commissioner.

"Commissioners Bol-Vie Kuhn, Peter Ueberroth, the late A. Bartlett Giamatti,

Faye Vincent and ( commissioner-elect) Bud Selig did nothing individually

to damage baseball, the lack of stable leadership since 1984 has certainly

impeded the game's progress" (Sport 3/94)

Results & Conclusions

In has become evident through the analysis of the presented

examples concerning the leadership action of the three major professional

sports commissioners that the main hypothesis is acceptable. The actions

of commissioners in situations of conflict or crisis do have a positively

correlated effect upon the popularity and marketability of their sport in

the eyes of the media and fans. One only needs to study David Stern to see

how decisive leadership action in response to situation of conflict and crisis

like the NBA's drug problems or labor negotiations has saved the public

image of the league. His leadership response in these situation has allowed

the NBA to become the most popular professional sports league in the

world. The keys in his response are similar to those outlined in the review

of Barton�s Crisis Management. Stern is always away of his role in

relationship to the situation and the power that his action can have to

solve the situation. Stern typically seems to act in a manner that is in the

best interest or is the desire of all parties. And finally, Stern is a public

relations master, always being perceived as though he is dealing in an up­

front and honest way with the media. His action during the NBA's labor

crisis highlights the need for a commissioner to be a good mediator. Stern

was able to step into as escalating situation and focus the parties on the

core issues in conflict, away from those that had risen in the escalation

process. He was also able to push for a solution that was mutually

beneficial to both players and owners, therefore serving the best interest

of the NBA. It is leadership action such as this from Stern cause him to be

widely renowned as the best commissioner in professional SJX)rts. His

ability to manage conflict whether he is in a situation where he has

authority or not ls a skill that the next commissioner of baseball must

emulate.

The only difficulty is comparing the actions of these commissioners is

that they do operate in different environments with different followers.

In Stem's case, his sport ls expanding. Consequently, it is not as difficult to

create consensus in labor negotiations because both players and owners

know that they are going to get an ever increasing amount of revenue. In

the case of Major League Baseball, the financial growth of the league is

stagnant overall; some individual teams are profiting, but the league itself

is not. There is also very little revenue sharing (which exists In the NBA)

so owners are less motivated to work together on Issues. The focus on

self-interest of the owners is a challenge the next baseball commissioner

will have to overcome in the labor negotiation process. The next baseball

commissioner will also have to try to gain back some power in punishing

players for on-field and off-field acts from the MLB Players Association.

The power of the Players Association has taken some of the autonomy

from the position of commissioner; no longer would it be possible to rule

with an iron hand like Judge landis without some form of legal reproach.

The final aspect of the situation which must be repaired is the relationship

of the sport to the media. The NBA has promoted its star players to the

point where its seems a majority of television spokespeople are currently

NBA players. MLB has taken the approach of promoting the franchises and

the game of baseball through there media outlets. This approach will have

to change when a new commissioner takes office. Also the action of

players will require close monitoring in order to prevent or control

individual players from ruining the progress of the game through any type

of isolated, stupid act (See Albert Belle chasing small children from his

front yard in his car on Halloween). This media focus must also be

maintained d urtng the next commissioners handling of crisis and conflict.

It is in the press that judgments are made concerning the progress of the

game and the popularity of individuals involved. The publicity generated

by the press is not completely controllable, but it is monitorable. With

efficient use of support personnel, the commissioner can observe and

response quickly to any incident or report which is potentially damaging.

In summary, this paper has shown that leader action can and does

effect the popularity and marketability of professional sports leagues. The

main leader actions which are observed in the press and are therefore

relevant are the resolution of conflict and the management of crisis. It is

essential that the next person selected to be MLB Commissioner have an

aptitude with these skills and be able to communicate well with the media.

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